A working meeting between Alexey Miller Chairman of the Gazprom Management Committee and Alexander Khoroshavin, Governor of the Sakhalin Region took place in Saint Petersburg today.

It was noted that Gazprom was going to start natural gas production in 2013 from the Kirinskoye gas and condensate field under the Sakhalin III project. For the first time in Russia's history gas will be produced by subsea production systems. The gained experience Gazprom will apply in offshore hydrocarbons production, including the Russian Arctic Region.

The Company is getting ready to pre-develop other fields of the Sakhalin III project. In particular, an action plan has been worked out as part of the project for the Yuzhno-Kirinskoye gas and condensate field development

The parties discussed the gasification development in the Sakhalin Region. In 2013 Gazprom is planning to finish the construction of a gas branch and the Nogliki gas distribution station (GDS) along with two inter-settlement gas pipelines: from the Nogliki GDS and from the Novo-Aleksandrovsk gas distribution sub-station. The construction of another inter-settlement gas pipeline will be continued. The Company is going to allocate RUB 700 million for these purposes in 2013. The Region's Government, in its turn, is ready to prepare the consumers for gas supplies: to transfer 6 boiler houses to gas and to build the necessary local networks.

Special attention was paid to Gazprom's participation in the regional social projects. It was noted that an ice palace built with Gazprom's support would be opened in April in Yuzhno-Sakhalinsk.

Background

Gazprom and the Sakhalin Region Government entered into the Agreement of Cooperation and the Accord on Gasification in September 2006 and October 2012 respectively. The joint program for the regional gasification development until 2014 was approved in 2011.